Outlook for China's Aviation Market

The video discusses the thaw in China-South Korea relations following the THAAD missile issue and its impact on Chinese carriers. Traffic on Korean routes has decreased, affecting profitability. Chinese carriers are increasing domestic capacity, which may affect yields if demand doesn't grow. The geopolitical instability of China affects Asian carriers, but the long-term growth prospects of the Chinese airline sector remain positive, with increasing visitor arrivals in Southeast Asia.

What was the primary cause of the decline in traffic on Korean routes for Chinese carriers?

• Economic recession

• Deployment of the THAAD missile system

• Natural disasters

• Increase in fuel prices

Which airline is most exposed to lower passenger yields due to its domestic capacity?

• China Southern

• Air China

• China Eastern

• Spring Airlines

What is the main concern regarding the increase in domestic capacity by Chinese carriers?

• High maintenance costs

• Mismatch with travel demand growth

• Insufficient aircraft

• Lack of trained pilots

How do geopolitical tensions typically affect Asian carriers in the short term?

• They result in increased fuel costs

• They cause a long-term decline in passenger numbers

• They have a short-term impact of less than a year

• They lead to permanent route closures

Which Southeast Asian countries have seen rapid growth in Chinese inbound visitor arrivals?

• Thailand and Indonesia

• Vietnam and Malaysia

• Philippines and Brunei

• Myanmar and Laos